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10 Cards in this Set
- Front
- Back
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Which of the following is a component of Porter's 5-forces model? a. Threat of substitutes b. Barriers to existence c. Rivalry among suppliers d. Bargaining power of competitors |
a.) threat of substitutes |
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Deelited Inc. is a company that manufactures soft toys for children. The company operates on a very large scale, and this has enabled it to price its toys at very competitive rates while still retaining good product quality. Since it is extremely difficult for a new entrant to sell toys at such low prices, few competitors have emerged for Deelited in the past five years. In this case, the low threat that Deelited Inc. faces from new entrants can be attributed to: a. supply-side economies of scale. b. high capital requirements of the industry. c. incumbency advantages. d. demand-side benefits of scale. |
a.) supply-side economies of scale |
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Which of the following factors discourages the entry of new players into a market by reducing consumers' preference to purchase from them? a. Incumbency advantages b. Demand-side benefits of scale c. Unequal access to distribution channels d. Supply-side economies of scale |
b.) demand-side benefits of scale |
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A buyer will have high bargaining power relative to a supplier when: a. the demand for the supplier's product is high. b. there are few suppliers who provide the required product. c. the supplier's products are highly specialized. d. the supplier's products are largely undifferentiated. |
d. the supplier's products are largely undifferentiated. |
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Which of the following is an example of an intangible resource of a firm? a. Machinery b. Brand name c. Computing systems d. Raw materials |
b.) brand name |
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SWOT analysis is a tool that allows the managers of a firm to: a. check the progress of projects that are yet to be completed and set more realistic deadlines for them. b. get an overview of the firm's internal strengths and weaknesses and predict external threats and opportunities. c. compare the firm's processes and performance metrics with those of their competitors and other leading players in the industry. d. analyze and evaluate the strengths, weaknesses, opportunities, and threats faced by their competitors in the market. |
b.) get an overview of the firm's internal strengths and weaknesses and predict external threats and opportunities. |
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A ________ strategy aims to provide a product or service at as low a price as possible to a broad audience. a. focus b. value-added c. mass distribution d. cost leadership |
d.) cost leadership |
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Which of the following is true of a differentiation strategy? a. A firm can achieve and sustain differentiation as long as its price premium is less than the extra costs incurred in being unique. b. Differentiation strategies based on distribution systems are generally unsuccessful. c. An advantage of differentiation is that customers do not have to pay a premium price for a firm's product, even if that product is truly differentiated in terms of value. d. In order to implement a successful differentiation strategy, companies should seek to increase costs in its activities that do not contribute to differentiation. |
c. An advantage of differentiation is that customers do not have to pay a premium price for a firm's product, even if that product is truly differentiated in terms of value. |
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Which of the following functions is a support activity of a firm? a. Technological development b. Outbound and inbound logistics c. Marketing and sales d. Operations |
a.) technological development |
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Which of the following refers to activities involved with collecting, storing, and physically distributing a final product to customers? a. Outbound logistics b. Marketing c. Inbound logistics d. Operations |
a.) outbound logistics |
